Productivity spillovers through vertical linkages: Evidence from 17 OECD countries

Bitzer, Jürgen; Geishecker, Ingo; Görg, Holger

doi:10.1016/j.econlet.2007.07.015

Cited by 27 publications

(10 citation statements)

References 10 publications

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“…Most of the identified studies, although related to the FDI spillover literature, did not estimate vertical spillovers. We also excluded a few studies that estimated vertical spillovers but did not define linkages as a ratio and thus could not be used to compute the semi-elasticity (for example, Kugler 2006;Bitzer et al, 2008). We often had to ask the authors for sample means of linkage variables or for clarification of their methodology: about 20% of the studies could only be included thanks to cooperation from the authors.…”

Section: The Spillover Estimates Data Setmentioning

confidence: 98%

Estimating vertical spillovers from FDI: Why results vary and what the true effect is

Havránek

Iršová

2011

Journal of International Economics

395

274

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Section: The Spillover Estimates Data Setmentioning

confidence: 98%

Estimating vertical spillovers from FDI: Why results vary and what the true effect is

Havránek

Iršová

2011

Journal of International Economics

395

274

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“…Wang and Gu (2006) have examined the effect of FDI on total factor productivity (TFP) growth in Canadian manufacturing industries over the period 1973-1977 and found that FDI generates strong and positive spillover effects on TFP growth through both backward and forward linkages. Bitzer et al (2007) have considered the effect of horizontal and vertical spillovers through industry-level data for 17 OECD and Central and Eastern European countries (CEEC), demonstrating evidence of positive spillovers through vertical backward linkages, but with much higher effect for CEEC. They also found that the effect of horizontal linkages is positive.…”

Section: Literature Reviewmentioning

confidence: 99%

Absorptive capacity, foreign direct investment-linked spillovers and economic growth in Vietnam

Anwar

Nguyen

2010

Asian Bus Manage

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Before the introduction of the economic reform process in the late 1980s, the Vietnamese economy was operating under a centrally planned system. The reform process resulted in the integration of Vietnam into the world economy, which led to significant increase in foreign investment. By making use of panel data on 22 manufacturing industries over the period 1995-2005, this article examines the impact of foreign direct investment (FDI)-generated spillovers on manufacturing sector growth in Vietnam. Unlike most existing studies, which are limited to considering the effect of FDI on economic growth, this article focuses on the impact of FDI-linked spillovers that take place through both horizontal and vertical linkages between domestic and foreign firms. The empirical results presented here suggest that FDIgenerated spillovers have made a significant contribution to manufacturing sector growth in Vietnam through vertical-backward linkages. The positive impact of vertical-backward linkages on manufacturing sector growth is strengthened by the stock of human capital. Specifically, manufacturing industries with a larger stock of human capital have experienced a higher level of technological advancement and hence stronger economic growth.

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“…research is for the year 2000. As a result, this study holds the linkage coefficients for vertical spillovers constant over the observation period, as done by Bitzer et al (2008). Following Javorcik (2004), Blalock and Gertler (2008), Le andPomfret (2011), andSuyanto et al (2014), backward linkages are defined as follows:…”

Section: Model Specificationmentioning

confidence: 99%

FDI productivity spillovers and the technology gap in Malaysia's electrical and electronic industries

Khalifah

Salleh

Adam

2015

Asian-Pac Economic Lit

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This study measures the impact of indirect technology transfer through spillovers from foreign direct investment (FDI) on Malaysia's development of a 'high-tech' sector, namely the electrical and electronic (E&E) industries. We estimate the total factor productivity (TFP) of establishments as a function of foreign presence within and across industries. Both the fixed assets and wages share of foreign establishments in a five-digit ISIC (International Standard Industrial Classification) industry are used as measures of foreign presence. The estimations provide evidence of significantly negative (or insignificant) FDI vertical spillover effects and insignificant horizontal spillover effects on the TFP of domestic establishments. The positive (negative) coefficient of the interaction term between the forward (horizontal) spillover variable and the technology gap supports the 'catching-up' (technology accumulation) hypothesis. The negative impact, even absence, of FDI spillover effects on TFP and the mixed evidence on the effects of interactions between FDI spillovers and the technology gap suggest that fine-tuning of fiscal incentive schemes for FDI to arrive at positive net benefits may prove to be a daunting task in the Malaysian E&E industries.

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Productivity spillovers through vertical linkages: Evidence from 17 OECD countries

Cited by 27 publications

References 10 publications

Estimating vertical spillovers from FDI: Why results vary and what the true effect is

Estimating vertical spillovers from FDI: Why results vary and what the true effect is

Absorptive capacity, foreign direct investment-linked spillovers and economic growth in Vietnam

FDI productivity spillovers and the technology gap in Malaysia's electrical and electronic industries

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